The surrounding areas of Labasa are mostly farming areas, which contribute to much of the industry in the town. The largest crop grown is sugar cane. The large Fiji Sugar Corporation-1894 sugar mill on the outskirts of Labasa town is the only such mill on the island.

Recently, due to political changes and loss of overseas markets, sugar cane farming and production has been steadily decreasing. This has been reflected in the increasing migration of people to the main island of Viti Levu,